Elections will determine Germany’s fiscal direction

2021 ◽  
Keyword(s):  
European Commission ◽  
Public Debt ◽  
Substantial Reduction ◽  
European Countries ◽  
Housing Crisis ◽  
Content Type ◽  
Net Zero ◽  
Fiscal Reforms ◽  
Fiscal Conservatism ◽  
Southern European Countries

Significance The debt brake, which places a strict limit on the issuance of public debt and reflects Germany's innate fiscal conservatism, is being challenged given COVID-19 disruption, a housing crisis and the commitment to transition to a net-zero emissions economy. Impacts The chances of a coalition excluding the CDU/CSU have increased in recent weeks following the CDU’s decline in the polls. The European Commission will be sympathetic to the demands of southern European countries when considering fiscal reforms. A substantial reduction in German debt issuance could see the ECB exceed its debt limits.

Government failures and non-performing loans in European countries: a spatial approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ferdinando Ofria ◽  
Massimo Mucciardi
Keyword(s):  
Public Debt ◽  
Geographically Weighted Regression ◽  
European Countries ◽  
Weighted Regression ◽  
Second Step ◽  
Ols Regression ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
The Eu

PurposeThe purpose is to analyze the spatially varying impacts of corruption and public debt as % of GDP (proxies of government failures) on non-performing loans (NPLs) in European countries; comparing two periods: one prior to the crisis of 2007 and another one after that. The authors first modeled the NPLs with an ordinary lest square (OLS) regression and found clear evidence of spatial instability in the distribution of the residuals. As a second step, the authors utilized the geographically weighted regression (GWR) to explore regional variations in the relationship between NPLs and the proxies of “Government failures”.Design/methodology/approachThe authors first modeled the NPL with an OLS regression and found clear evidence of spatial instability in the distribution of the residuals. As a second step, the author utilized the Geographically Weighted Regression (GWR) (Fotheringham et al., 2002) to explore regional variations in the relationship between NPLs and proxies of “Government failures” (corruption and public debt as % of GDP).FindingsThe results confirm that corruption and public debt as % of GDP, after the crisis of 2007, have affected significantly on NPLs of the EU countries and the following countries neighboring the EU: Switzerland, Iceland, Norway, Montenegro, and Turkey.Originality/valueIn a spatial prospective, unprecedented in the literature, this research focused on the impact of corruption and public debt as % of GDP on NPLs in European countries. The positive correlation, as expected, between public debt and NPLs highlights that fiscal problems in Eurozone countries have led to an important rise of problem loans. The impact of institutional corruption on NPLs reports that the higher the corruption, the higher is the level of NPLs.

Air pollution and public finance: evidence for European countries

2019 ◽  
Vol 46 (7) ◽  
pp. 1398-1417 ◽  
Author(s):  
Maria Carratù ◽  
Bruno Chiarini ◽  
Antonella D’Agostino ◽  
Elisabetta Marzano ◽  
Andrea Regoli
Keyword(s):  
Public Finance ◽  
Air Pollution ◽  
Fiscal Policy ◽  
Environmental Quality ◽  
Public Debt ◽  
Environmental Performance ◽  
European Countries ◽  
Fiscal Consolidation ◽  
Trade Off ◽  
Content Type

Purpose The purpose of this paper is to investigate whether a statistically significant relationship exists between environmental quality, as measured by consumption-related air pollution, and public debt in Europe. In addition, since the debt burden is one of the most important indicators of fiscal soundness within the European Union (EU) Treaty and the subsequent fiscal compact, the authors propose a simple test to determine whether participation in EU Treaties has shaped the empirical relationship between fiscal policy/public debt and environmental performance. Design/methodology/approach To this end, the authors built a panel data set that covers 24 European countries over the period 1996–2015. Findings The aspect that the authors want to underline is a possible trade off, which is confirmed in the empirical analysis, between the public finance equilibrium and the maintenance of a public good such as air quality. However, there are important non-linearities that shape the interaction between public debt and environmental pollution. Similarly, threshold effects arise when the authors examine the interaction between EU regulation and public debt and when the authors separately examine high debt and low debt countries. When the authors account for the stabilization rules introduced by EU Treaties, a negative effect on pollution is evident; in this way, fiscal consolidation limits the positive effect of fiscal policy. Practical implications The results point out the existence of a potential trade-off between the role of EU as a regulator aiming to mitigate environmental pollution, and its role within the Stability and Growth Pact. The analysis highlights that fiscal consolidation policies, while facilitating the achievement of macroeconomic stability within EU, might have a negative side effect on the environment quality, which spreads beyond the borders of one single country. Originality/value While a number of studies have suggested that fiscal spending might contribute to the level of pollution in European countries, there is scant evidence of the effect of public debt on environmental performance. This lack of scientific knowledge is a serious shortcoming, since it may allow for an underrepresentation of the wide-ranging consequences of stabilization programmes targeting the debt-to-GDP ratio, which could affect environmental quality.

scholarly journals Efficiency of Demand Shocks in Order to Reduce Current Account Imbalances in the EMU

2013 ◽  
Vol 2013 ◽  
pp. 1-17
Author(s):  
Séverine Menguy
Keyword(s):  
Current Account ◽  
Public Debt ◽  
Debt Crisis ◽  
European Countries ◽  
Demand Shock ◽  
Northern European ◽  
Current Account Imbalances ◽  
Openness To Trade ◽  
Southern European Countries ◽  
Account Imbalances

With the current European sovereign public debt crisis and current account imbalances difficulties in the EMU, many papers now underline that the problem of the European construction is its lack of institutional framework and common economic governance necessary to make a monetary union viable. According to these papers, the solution would lie in a stronger economic cooperation, with the Northern European countries contributing to lighten the burden of the Southern debtor countries. In this context, our model shows that a symmetric positive demand shock in the EMU could only slightly reduce the external indebtedness of the Southern European countries but would efficiently reduce their public debt levels. To the contrary, an asymmetric positive demand shock in the creditor Northern European countries (e.g., an increase in German wages) could reduce the current account deficits of the Southern European countries, in particular for countries with the highest openness to trade. Nevertheless, it would worsen the indebtedness levels, and it would also increase the recessionary risks in these countries.

scholarly journals Is the Family System in Romania Similar to those of Southern European Countries?

2016 ◽  
Vol 41 (1) ◽  
Author(s):  
Maria Castiglioni ◽  
Mihaela Hărăguş ◽  
Cristina Faludi ◽  
Paul Teodor Hărăguş
Keyword(s):  
Family System ◽  
Family Care ◽  
Well Being ◽  
European Countries ◽  
Western World ◽  
Intergenerational Support ◽  
Housing Crisis ◽  
Low Countries ◽  
Family Ties ◽  
Southern European Countries

In his influential 1998 study, David S. Reher discusses historical differences between countries with strong and weak family ties. He focuses on the “Western World”, comparing Italy and the Iberian Peninsula with Scandinavia, the British Isles, the Low Countries, Germany and Austria, together with North America. In this paper, we explore whether Romania, in Eastern Europe, can be characterised as having a strong family system, given the increasingly important role family has played for individual well-being following the end of the socialist regime. We observe a number of similarities between Romania and Southern European countries in terms of behaviours associated with “strong family ties”, opinions on family care and mutual intergenerational support. Differences can be explained in light of Romania’s economic and housing crisis. Overall, it is likely that the importance of family ties in Romania increased after the end of the socialist regime.

EU leaders will be constrained by deepening divisions

2019 ◽  
Keyword(s):  
European Commission ◽  
Rule Of Law ◽  
Security Policy ◽  
European Parliament ◽  
Foreign Affairs ◽  
European Countries ◽  
Content Type ◽  
Central European ◽  
Commission President

Subject EU institutions. Significance The European Council’s choices of heads for the European Commission, ECB, Council and the High Representative for Foreign Affairs and Security Policy represent continuity. All are Western Europeans and all belong to centrist groups in the European Parliament (EP). However, the influence of the centre is declining in some institutions while that of peripheral groups is growing. Impacts Ursula von der Leyen's appointment as Commission president is destabilising to governing coalitions in Germany and Italy. Eastern and Central European countries believe that von der Leyen will adopte a more lenient stance on rule of law issues. Von der Leyen will support French President Emmanuel Macron's plans for European defence autonomy. Christine Lagarde’s nomination to head the ECB looks more like a political than a technical appointment.

Economic growth in Spain is set to slow down

2016 ◽  
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Housing Market ◽  
Public Debt ◽  
Job Creation ◽  
European Countries ◽  
Medium Term ◽  
Content Type ◽  
Sustained Growth ◽  
Low Interest Rates

Significance Despite the absence of an effective government since December, the economy has maintained growth above an annualised 3%, higher than in most other Western European countries. Impacts Sustained growth will enable further job creation and reduce unemployment. Low interest rates and higher employment will support demand, especially in the housing market. Public debt will remain high in the short-to-medium term and the deficit will not be reduced to below 3% until 2018, dragging on growth. There is little macroeconomic space for further stimulus, although both the PP and Citizens have pledged to reduce taxes.

Euro-area reforms will reinforce fiscal consolidation

2020 ◽  
Keyword(s):  
Euro Area ◽  
European Countries ◽  
Bank Failures ◽  
Fiscal Consolidation ◽  
National Parliaments ◽  
Member States ◽  
Content Type ◽  
Southern European Countries

Significance The reforms would allow the ESM, which provides emergency loans to distressed member states, to offer greater assistance to banks and enhance its capacity to design and implement bailout programmes. They will enter into force once ratified by national parliaments. Impacts The reforms will boost confidence in EU markets and reduce the risk of contagion from bank failures. The ESM will remain politically divisive, especially in southern European countries. Pressure will grow on governments to prioritise fiscal consolidation from 2022, threatening to undermine growth in weaker economies.

Innovation and entrepreneurship as drivers of economic development

2020 ◽  
Vol 30 (5) ◽  
pp. 681-704 ◽  
Author(s):  
Vitor Medeiros ◽  
Carla Marques ◽  
Anderson Rei Galvão ◽  
Vitor Braga
Keyword(s):  
Economic Development ◽  
European Countries ◽  
Quadruple Helix ◽  
Content Type ◽  
Northern European ◽  
Model Control ◽  
Significant Difference ◽  
Southern European Countries ◽  
Quadruple Helix Model ◽  
Innovation And Entrepreneurship

Purpose The aim of this study is to explore which factors of entrepreneurship and innovation influence economic development under the quadruple helix model, contrasting Southern and Northern Europe. Design/methodology/approach In this study, secondary data are collected from the Global Entrepreneurship Monitor databases, Organization for Economic Co-operation and Development and Global Competitiveness Index, for four countries in the North and four Southern European countries, for the period from 2007 to 2015. Data was analyzed with SPSS 22.0 software and subjected to several multivariate statistical tests. Findings The results show a statistically significant difference in the variables of the four quadruple helix model dimensions. This means that Northern European countries (Finland, the Netherlands, Norway and Sweden) display better results on innovation and entrepreneurship than Southern European countries (Spain, Greece, Italy and Portugal). The results also showed that per capita gross domestic expenditure on R&D is positively related to government and university dimensions, with significant differences between Southern and Northern European countries. Originality/value It is hoped that this study will contribute to new evidence on the factors of innovation and entrepreneurship that are decisive for economic development. To the traditional quadruple helix model, control variables were added to meet the endogenous characteristics of the countries.

scholarly journals A Review of Bioplastics and Their Adoption in the Circular Economy

Polymers ◽  
2021 ◽  
Vol 13 (8) ◽  
pp. 1229
Author(s):  
Alberto Di Bartolo ◽  
Giulia Infurna ◽  
Nadka Tzankova Dintcheva
Keyword(s):  
European Union ◽  
Life Cycle Assessment ◽  
Life Cycle ◽  
European Commission ◽  
Circular Economy ◽  
Environmental Risks ◽  
Plastic Waste ◽  
The European Union ◽  
Sustainable Society ◽  
Net Zero

The European Union is working towards the 2050 net-zero emissions goal and tackling the ever-growing environmental and sustainability crisis by implementing the European Green Deal. The shift towards a more sustainable society is intertwined with the production, use, and disposal of plastic in the European economy. Emissions generated by plastic production, plastic waste, littering and leakage in nature, insufficient recycling, are some of the issues addressed by the European Commission. Adoption of bioplastics–plastics that are biodegradable, bio-based, or both–is under assessment as one way to decouple society from the use of fossil resources, and to mitigate specific environmental risks related to plastic waste. In this work, we aim at reviewing the field of bioplastics, including standards and life cycle assessment studies, and discuss some of the challenges that can be currently identified with the adoption of these materials.

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